Typical corporate structure in high tax environment - Saab General Bulletin Board - Saabnet.com
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Typical corporate structure in high tax environment
Posted by Tim (more from Tim) on Mon, 23 Aug 2010 07:55:47
In Reply to: Interesting history on Bosch and Rober Bosch, B, Fri, 20 Aug 2010 21:47:16
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The owner of significant wealth would fold his fortune into a charity-owned organization, then appoint his offsprings to the board of that charitable organization. It's a way to get around the horrendous inheritance tax and very high income tax. The family owning IKEA is doing similar things.
The next step in social devolution is for the wealthy families to buy/foment a revolution, which then sets up a revolutionary dictatorship that bans all competition to the big wealthy industrialists and award all government contracts to the established families, either as nominally privately owned companies or as government ministers.
20% of a society owns 80% of the wealth/power, and 20% within that 20% owns the 80% of that 80% (i.e. 4% owning 64% of societal total, then the top 1% owning just about half of the total). That formula seems to be the case for free market societies, social democracies, as well as for dictatorships of both the left and right variety. The rest is all about alleviating envy. Transparency is good for competition and economic growth. The more hoops the top 20%, top 4% and top 0.8% have to go through to dress up their actual holdings as something else, the more time and energy is wasted on hiding that fact (and massive destruction in social uphevals) instead of growing the economy itself.
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